Our mission

Carlson Wealth Management although founded in 2010 by John Carlson was actually born during the devastating bear market of 2000-2002. It was the financial and emotional stress of markets that saw declines of 50% or more that drove Mr. Carlson, now a 25 year industry veteran, to search for and ultimately find better answers in how to protect investors from market downturns that can potentially destroy people’s lives.

Our core beliefs

We do not follow basic asset allocation of simply diversifying your investments across multiple areas. We feel this is a strategy that can limit potential growth and downside protection.

Instead we follow an approach that first identifies, then invests in and when needed, rotates among only the strongest areas of the markets. Our goal is to always maintain a diversified portfolio focused on market strength. There is no restriction on where we can invest. If it is showing strength then it is a candidate for inclusion in your portfolio. When it loses strength it is replaced.

We don’t follow the traditional, buy and hold approach of the modern portfolio theory.

Instead we utilize our market trend indicator (the bearometer) to efficiently identify changes in market trends. Our objective is to protect the value of your portfolio during market declines.

The Majority Opinion: WHERE TO INVEST

Wall Street is full of opinions. An investor who is selling a particular security obviously has a different opinion than the investor who is buying it. The bottom line is that for every Buyer there needs to be a Seller; and for every Seller there must be a Buyer so different opinions are mandatory for markets to function.

We believe a superior approach is to follow only one opinion: The Majority Opinion.

And the only place to find the Majority Opinion is in the Price. It is here where the Buyer and Seller come together. If there are more buyers than there are sellers, the price can only go in one direction…Up, and if there are more Sellers than there are Buyers then the price can only go in one direction…Down. These are the basic tenets of Supply vs. Demand.

Owning assets demonstrating the greatest demand over time has shown to a be a superior investment approach versus the typical asset allocation approach of diversifying across multiple assets. The majority opinion provides us with the first essential element of our strategy – WHERE to invest.

Just like Track and Field:

 

In track and field an individual runner could never compete with a relay team around the same track. Four runners of equal caliber will always run faster than one.

relay-race-655353_1280 - free imageResearch clearly validates the principles of relative strength investing. Diversify your investments only in the strongest areas of the markets and replace them when they weaken.

Just like the weakening runner passing the baton to the next stronger runner.

Defense Wins Championships: WHEN TO INVEST

Just like a Sailor Sailing:

 

If you know that the markets will occasionally experience down periods water-79919_1280 free imagewould you want your funds protected or left exposed during those times? Just like a football game there are times to be on offense and there are times to be on defense. If you were a football coach you would NEVER play your offense the entire game. When you lost the ball you would bring in your defense.

Traditional money management is typically always on offense. Always invested in the markets. Always at risk.

Tactical money management will adjust to market conditions sometimes playing offense and sometimes playing defense. This is our second essential element to our strategy – WHEN to invest.

The traditional money management approach is commonly referred to as “Buy and Hold”. Risk is believed to be controlled by simply diversifying. We believe that this is NOT a strategy, but a posture. It is the same as a sailor pointing their boat in one direction hoping that the tides and winds will take them to their destination. If you’ve ever sailed then you know that this is the true meaning of hope.

We believe that taking a tactical approach or navigating to your destination is a superior approach to investing. Bear Market declines are devastating both financially and emotionally, and difficult for investors to hold through. Through proper tactical investing both market declines and market advances are identifiable and therefore manageable.

Disclaimer

The information contained herein has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs. Accordingly, investors should not act on any recommendation (express or implied) or information in this material without obtaining specific advice from their financial advisors and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources believed to be reliable (“information providers”). However, such information has not been verified by Carlson Wealth Management (CWM), Dorsey, Wright & Associates, LLC (DWA) or the information provider and DWA, CWM and the information providers make no representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein. CWM, DWA and the information provider accept no liability to the recipient whatsoever whether in contract, in tort, for negligence, or otherwise for any direct, indirect, consequential, or special loss of any kind arising out of the use of this document or its contents or of the recipient relying on any such recommendation or information (except insofar as any statutory liability cannot be excluded). Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice. Neither the information nor any opinion expressed shall constitute an offer to sell or a solicitation or an offer to buy any securities, commodities or exchange traded products. This document does not purport to be complete description of the securities or commodities, markets or developments to which reference is made.

Unless otherwise stated, performance numbers are based on pure price returns, not inclusive of dividends, fees, or other expenses. Past performance is not indicative of future results. Potential for profits is accompanied by possibility of loss. You should consider this strategy’s investment objectives, risks, charges and expenses before investing. The examples and information presented do not take into consideration commissions, tax implications, or other transaction costs.

The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Performance information presented is the result of back-tested performance. Back-tested performance is hypothetical (it does not reflect trading in actual accounts) and is provided for informational purposes to illustrate the effects of the CWM strategy during a specific period. The CWM strategy is NOT a guarantee. There may be times where all investments and strategies are unfavorable and depreciate in value. The CWM strategy is not predictive.

Back-tested performance results have certain limitations. Such results do not represent the impact of material economic and market factors might have on an investment advisor’s decision making process if the advisor were actually managing client money. Back-testing performance also differs from actual performance because it is achieved through retroactive application of a model investment methodology designed with the benefit of hindsight. CWM believes the data used in the testing to be from credible, reliable sources, however, CWM makes no representation or warranties of any kind as to the accuracy of such data.